Don't Be Fooled by Connecticut's "Balanced Budget" Talk
- 27 minutes ago
- 2 min read
When Governor Ned Lamont touts his budget proposals, boasting that Connecticut has moved away from the "permanent fiscal crisis" with "honestly balanced budgets," he isn't telling you the whole story.
Think of it like a household: you may have money in your checking account to pay this month’s bills, but that doesn’t mean you're rich if your credit card debt is huge. Connecticut has cash for today, but our overall debt burden is among the worst in the nation thanks to decades of over-promising and under-funding public pensions and health care benefits.
According to this August 20 policy study by the Reason Foundation, CT triggered four major financial red flags—placing us behind only New Jersey for overall financial stress. If not resolved, CT may require significantly more tax increases, benefit reductions, service cuts, or constitutional reforms to restore sustainability.
Red Flag 1: Debt Exceeds Assets
We owe more than twice as much as we own.
Red Flag 2: Negative Savings Account
CT has a massive $60.8 billion deficit in unrestricted funds. We balance the budget each year through high taxes and borrowing, not true savings.
Red Flag 3: Extremely High Debt Per Person
CT leads the entire nation with $26,187 in state debt for every single resident. The study considers anything over $10,000 a red flag—we are more than double that.
Red Flag 4: Debt Outpaces Income
Our debt is more than twice our total annual state revenue.
Between the Lines: Don't let big-spending politicians brag about balancing the annual budget. Ask why they are trying to weaken the state's "fiscal guardrails"—the very rules designed to stop overspending and force the state to pay down this massive debt hanging over our heads.